Biden: cut out the middle man on student loans .... Biden said work should be done to consolidate student loan programs, to cut out private student lenders who currently act as middlemen on many federal student loans. He said that could save $94 billion over a decade. "We can take the $94 billion and reinvest it in more loans, more grants and more access to college," he said. Biden: Cut out higher ed loan middlemen - White House- msnbc.com its a good idea and a good start. student loans are a flippin racket. there is no way that the cost of going to school has risen so much in so little time. but, the schools know they can simply get their students to take out high student loans. and the students willingly do so. no problem there. but cutting out the middle man on federal loans, reducing interest rates is a good start. IMO, the reason the cost of attending college, especially graduate college, is so high is that student loans are a money maker. the schools know they can keep raising rates because student loans cannot be defaulted on anymore. and they know that students will willingly pay more to get that higher education if they don't want to take a different route in the work field. so cutting out the middle man, sounds like a good start. edit: i'm referring only to federal loans, if you take out private loans, you pay market rates, but the government promises something different.